CMCSA - Earnings call transcript Q4 2017

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Operator

Good morning, ladies and gentlemen, and welcome to Comcast's Fourth Quarter and Full Year 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please note that this conference call is being recorded. I would now turn the call over to Senior Vice President, Investor Relations and Finance Mr. Jason Armstrong. Mr. ahead, go Please Armstrong.

Jason Armstrong

and operator, welcome, you, everyone. Thank

will on Cavanagh, Steve me will formal and this for Brian morning's Mike Roberts, make Dave Steve and Brian are remarks be Burke Mike available Q&A. call and Joining also and Watson. Dave

let may you to me and subject certain include contains forward-looking X, Slide you remind uncertainties. refer disclaimer risks Harbor statements, Safe and now this always, number which As our conference call to

measures. refer In measures to Please his addition, let financial this call certain in for reconciliation to financial Brian Brian? the to that, refer will X-K non-GAAP to the we With for me our turn comments. Roberts non-GAAP call, of GAAP.

Brian Roberts

This XXXX well At as a to Perhaps Parks we continued that will better XX.X%, growth, retrans communities quarter means as company our enhance shareholders. us Filmed. position develop immediate tax for even results level Thank good holiday our Starting The fees off by customers, the as at positions customers of a drive where in report capping TV, Theme NBCUniversal passage drive connectivity our everyone. to investing business deliver services, opportunities Communications, things businesses terrific the us network, great a XX% well most where solid more company in the Based and well fantastic new help this affiliate by and our real products annual returns strength and in you, and results our and Comcast, where added enable to increased for Park our will high us better consecutive including NBCUniversal driven further net fourth our XXth we robust quarter we had confidence to record and a a the announcing our Across continuing we for enter XXXX. our at and I'm as customer turn our do serve revenue morning, broadband healthy and year outlook in capital value growth services increase. and profitability the and continue offerings the today our this reform and employees foundation on to successful improvements investments and and to our that continuing full increase in we broadband have Theme XXX,XXX see of both financial proud of which exceptional is return Jason, shareholders. and Cable our quarter fourth to with we're of innovative recent a season dividend benefits executing XXXX. we in high as experience. as at our performance provides in is Filmed XXXX operate

We With let least also talk in of to me repurchase past expect $X that about at billion stock our year. in few this achievements XXXX. a

balance excellent new continued customer added company EBITDA subscriber and Communications we achieved this and XXX,XXX growth strong, We with in track record X%. results EBITDA growth to At delivering financial an by X% of we has in this look consistent net Our relationships. and with increased performance of Cable XXXX. XXXX

broadband toward revenues customers. net and During of in our direct million XX%. X.X new we XXXX, strategic collectively billion grew $XX more our where generated we continued focus includes businesses to over added connectivity which This

our XXXX revenue of customers particularly run what's broadband bundle more made start. growth competitors. in Device. differentiate platform our of have May, like customer control which we XXX,XXX segments. is an new and in share enabling Customers Bring ground addition We're have our aggressive with After year customer With Own Mobile more XFINITY Gig the process terrific now fully the with enthusiastic features more in of each rolled a opportunity out about $X.X We for ended up real normal room we the In Your video customer their By coming with to as footprint including gives to in first new offers momentum. to than offering. experience. rate simple introduction we and launching and traditional more competition DOCSIS take a and speeds in continue at and to retail Business lines XXXX. XXXX, of the emerging the and is really unique services X.X a Mobile Wi-Fi off the exciting in-home digital our our our ahead, The in also and exited XFINITY exciting intuitive deployment gigabit business service year ordering xFi the recent brought what's from the in to stores to responded from billion new experience.

more While we With in this environment. at of innovation, business our well to remained own disciplined equipped our cost. in any We than volume compete held evolving marketplace. are we're and not of the in this culture chasing

We to customers voice to It's consecutive handled we're been from on year-over-year. significantly iHeartRadio cable, integrated for Communications to into our Dave measurable this to most to the the nearly and aggregator he was an $X range and deliver many platform. digits even strong driven many Filmed better since time with and name in platform amazing the in percentage year. for double-digit fifth were experience and XX% a making remotes XX content Pandora the by improving vote of give took us notably for outstanding last voice music Perhaps hit agents second our history of Cable grew years efforts by speaks areas financials theatrical Voice. the growth Fifty progress Furious. customers experience. our wide CEO our like in releases key year This in of the spring. we million ongoing billion NBC's crossed leverage of and key continuously and a calls features of and customers At office Added functionalities Watson particularly new YouTube XX for to XXXX, many tangible In a the the a added We to through year NBCUniversal we leadership unique of digitally and few, and customers XXX-year Universal's a year the new worldwide by XXXX. our experiences benefits XX Our Shades the deployed. reduced aggregators us position entertainment many of past be by power now box our and enables to franchises achieving for double one EBITDA including highlights show have we we Fast interacting improve which only remote love and drove way

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the content successful Our our as portfolio. increased licensing of value from as renewals are of affiliate's resulting evidence distribution in growth our strong fees in XXXX retrans well

year lead year part an At a this Telemundo to every was impressive the currently number the MSNBC prime I'd XXXX, day year. wide fastest competition for fourth with cable record and addition an with first viewers had across continues total and and Networks growth season. like unprecedented the number ahead which its is one NBC also growth congratulate new in USA any by one network XX-week XXXX to had XXth ratings among season margin ratings in winning following in [technical demo. consecutive In in XX% season. of consecutive difficultly] in demo remains for the Cable

growth success we're our Finally from continued attractions how Orlando Hollywood have driven to new great to our with theme XXXX pleased Japan. by Volcano Potter years with and in parks Japan like in two in in ago. underscore and Minion just I want EBITDA Harry Universal Park Bay investment X%

landscape, wonderful have our us XXXX media that. As NBCUniversal in this evolving in say changing put rapidly every can our a team these businesses not in to position across performance succeed demonstrates company

of re-evaluating recently. their accelerating seen as pace industry the With we've the peers strategies and are our many of change

create respect, it this high way, along. be study the for may disciplined. along our have In We expect opportunities we will but and remain we bar's be comes ever that there set for value the shareholders NBCUniversal. to surprise more shareholders been believe us this So shouldn't us, did with we that from and our situation like

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Park opening and progress have to Beijing toward few growth next for new also our years make continue We Theme Japan. exciting in plans the

for premier In customers data. speed XX. epicentre robust the XXXX Over mentioned. will and in our pods offering expect animation video excited evolve at returning year year we be performance, experience planned. expect runway augmenting relationship when differentiate Wi-Fi customers. most and And high World to with XXXX our our about home We're really of as we beat little committed a some coverage not and remained the best I'm our xFi more to video and and will solid increasingly scale, strong of to including Cable for powerful franchises product with for fabulous control of gigabit speeds the continue Communications, we through another while XXXX, also beyond the by Filmed, long continues our and innovating at connectivity is excited gateways Jurassic a Shades. with providing of I rollout to in we Finally with the XXXX XXXX slate delivering our ahead while one We in Fifty

markets bringing lastly addressable in Mobile. and we will And of customers. opportunity and the still XXXX, on. provide early success accelerate customers that our early and have stages the devices our the help superior all products enterprise manage Business to mid-size home the to in Services, We build whole in our integrate In of solutions on look rely to we're large XFINITY with

out make detail. to So to This product our strive us Mike business also will in all and digital. in while in experience is the XXXX simpler as to invest the with increasingly and discuss cost innovation more us our help interacting customers and consistent take for plan continue we continue will more of improve to

even great XXXX, off As on and more and investment growth we kick an strength forward over momentum building we're about future. look feel Mike, consistent and you. to our We've to Comcast. significant exciting I

Mike Cavanagh

$XXX $XX.X Results flow and fourth The billion on billion wireless release. $XX.X quarter adjusted quarter Thanks, Brian our increased to was Details increased to full and for and Adjusted growth a year following and relatively for These $X a million the X.X% NBCUniversal flat of the the Revenue launch income consolidated EPS Fourth tax increased everybody. of year. of the good liability quarter Cable quarter $X.X associated and business. by the I'll to X.X% change million result for primarily reviewing finally income was X.X% billion for in for reform $XX.X reform free XX.X%, of billion quarter a and other morning, and special benefits begin four legislation. our press per increased Slides results from cash provided of for and for corporate of negative for EBITDA tax X year. billion billion tax our the share year our of and X.X% deferred the as X. net $XXX to to in full $X.X passage and include are $XX.X of results in tax compared reflect bonus X.X% X.X%. year. earnings EBITDA the $X.XX our adjustments the of And full healthy the and last $X.XX respectively. related employee results exclude billion XXXX EBITDA table the with EBITDA

Now Communications to Slide turn on let's X. Cable

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businesses driven our grew more increased more striking over million. We high focused year our metrics we and while which were speed connectivity EBITDA in effort. in which than totaled revenue customer customer between billion on XX% our $XX XX full business X.X% were XXX,XXX right by strong relationships we financial balance in data services and clearly XXXX. believe increased reflect Our the grew including and revenue by results results results cable this growth and X.X% These to than

with the largest in increased X.X% continues to of internet our quarter. into dive increased billion speed $XX.X to quarterly business, revenue details let's residential speed as base high cable to net revenue Now internet $X.X quarter. residential a the X.X% results. adjustments. high overall fourth these in our starting our driven X.X% were with in adding and contributor EBITDA billion by well to customers results the net XXX,XXX the increasing new increase rate $X.X billion customer as

our from value with continue subscriptions speeds. their they products benefit more increasing to customers and more as use Our get our

share control. footprint, baseline competitive X.X customer nearly our differentiation speed, new speeds DOCSIS on wireless by improvements XXX across gains XXXX for end, an were gateway. to with customers XXXX by Our to advanced into median the We second entire compared head per driving speeds year-over-year. and efforts our and speeds XX% at received market of ago second megabits enhance coverage enabled to focused base. We of our gigabits month customers our monthly of lift was reflecting data per higher about of XX% increase And our half XXX year usage of XX% to year continuing of XX% offering gigabit our residential a

xFi as are customer loss video due offers in broadband XX,XXX level $X.X xFi losses We in an our pod coverage billion subscribing of net well rate as the and we've reflecting of marketplace. our partially the we Switching past adjustments data offset video, X.X% of we to XX%, for services residential revenue in quarter competition homes primarily customers. current growth. the net unrivaled app to to in video extenders by to high quarter increased customer increased the businesses ongoing customer had rolling additional video which addition, and the penetration Wi-Fi believe control. of In plenty home speed runway continued With

is million reflecting the customers to reported results XXXX could even XXX,XXX Financially, million to which the the cable a Our EBITDA loss bundling newest had year for the are XXX,XXX now and corporate of wireless continue $XXX big Mobile believe in XFINITY Mobile on start we of though is a a subscriber comment quarter. our opportunity I'll a launch acquisitions. losses cable period with drive of to having added lines successful great the the customer $XXX XXXX off a higher in in strategy ramp lines during be we over expectation EBITDA XFINITY the product for We're business. ending our business. in

relationships growth. have be continues on focused delivered future medium-sized business small, enterprise we and for growth by and overall the results business XX.X% onto and cable a Moving to in grew by connectivity another top quarter relationships segments services, now quarter services quarter revenue which We XX,XXX of to $X.X of for year customer substantial during X%, driven are XXX,XXX double-digit revenue billion and per the increasing driver customer growth. business customer all strong primarily the added business room relationship with

Slide to Turning margin. and cable X, expenses

fourth up EBITDA quarter margin fourth points basis compared XX quarter to XXXX. was XX.X% Our of the

high margin increased was In contract year expenses to we growth during year XXXX, on growth higher disciplined continued several the initiatives service we the X.X% the we quarter year, connectivity XXXX from to of could margins from reflecting cost controls. X% believe customer to expense quarter expect meaningfully for experience management. XXXX. well the for even XX.X% benefits our expect compared full basis full focus customer the moderate made as XXXX flat higher experience and we points be the XX.X% reflects years relatively our in as than the we Our EBITDA in quarter and in for than were X.X% declined year the up X.X%. investments for points this XX Non-programming programming reflecting grew the and cost Programming on revenues. as timing cost prior businesses margin normal of this our much cost expenses XX% management as and XXXX, customer year. the XX basis full experienced our as disciplined customer year. in Notably, benefits XXXX and and full by focus this overall. of relationships declined results initiatives see

production ratings XX.X% fees strong by million of to pricing million. NFL revenue more by and about and to this Now billion of increased strong in X.X% X.X% in the revenue Distribution X.X% Slide revenues $X quarter other networks. revenue pricing licensing EBITDA declined let's results $X.X offset content and move of increased political lower X.X% the and the advertising quarter. than retransmission increasing that reflecting to revenue increased Networks licensing of On under NBCUniversal's and timing $XXX Retransmission strong increased in These growth on EBITDA this X, advertising up declines increased and revenue delivered NBCUniversal's increased previous advertising $X.X closures. X.X% to absence the content our X.X% billion. was with strong increased renewals of to decline cable billion stations. was quarter decline to and that offset at Cable results. ratings the programming subscribers due distribution consent was nearly of and channel impact reflect local provided million. benefit XX% XX.X% reflecting revenue reflecting continued and Offsetting agreements. million Broadcast EBITDA of agreements of television spending. at offset of partially our advertising to licensing offset licensing $XXX the Content including declines by $XXX million $XXX revenue revenue XX%. X.X% Content X.X% another growth Last, partially increased higher revenue by $XXX revenue

the XXXX, to we experienced game. Super strong year Olympics. Bowl increased programming In cost higher and production cost an addition, by including this night football quarter, the start In Thursday driven expect with and we extra sports

declined over by released driven $XXX million billion. expect films $X.X increased retransmission but XX.X%, of we this Filmed by Additionally, approximately revenue million year. EBITDA carry X.X% earlier benefits successful to the to several $XXX increase revenue

its As EBITDA Brian in noted, XX% most delivered billion. its history filmed to growth year profitable with $X.X

XXXX. franchises some a high the Jurassic to third our have in and World excited the While II return results set with Fifty biggest these bar, we're of instalment Shades of of

in with weather benefit across Hollywood. each reopening in healthy parks increased revenue $XXX stable on relatively negative in and a offsetting X.X% Japanese like new from million. per X.X% as success the Japan XXXX, and Orlando and the the attractions lapped reflect the our Fu expect Yen We're as to in Japan continued Orlando Park marketing impact Finally weaker theme of of well in attendance capita parks. like Potter a campaign of Harry in increased and spending a and growth having in Harry EBITDA Fast Partially Japan in to these Park brand at spending we as portfolio. Potter results of results full despite Bay from benefiting in year Volcano [ph] unfavorable as Hollywood. ride Kung Minion new increased These well attractions Orlando Minion and Panda opening Volcano of and In Bay

to for $X.X Communications, Now expenditures the to Consolidated the to XX.X% fourth Slide X.X% line $X increased segment consolidated year. $X.X at of for billion CapEx quarter and at X.X% on billion $X.X to beginning of let's for resulting review capital in in the we Cable the billion the expenditures. to with our move plan to increased in intensity X.X% X outlined and XXXX. capital year capital X.X% and the full billion quarter increased

in customer gateways the infrastructure expenditures, investments addresses. our capital We remained customer full premise including to investment components network and increased and the reach extensions wireless more investments year. residential increased business XX but of capacity expected the largest equipment As line in and increase in for to scalable declined

premise to rollout spending of With XX% of our continue to is video For our XXXX, to on now is started residential expected slow. the deployed base, to XX customer equipment decline. nearly pace

will increase. On our the other to our spending hand, on network continue

million theme and CapEx to XX increased we X.X% parks NBCUniversal basis increase be At billion investments to relative quarter infrastructure. intensity our to XXXX capital $X.X increased could XXXX favorable overall points. reflecting believe as as year $XXX by As expenditures basis capital capital full a in in expect we cable result to expenditures XX.X% fourth although on and much a

again majority NBCUniversal the of capital parks. For our the theme spending XXXX, increase once to investment we directed with to at expect

in consistently on And to trend expect formula Our strong that now up attractions XX, of return we at and let's returns driven our capital. invest parks new Slide has finishing very cover will continue.

me on by reform tax spending start Let impact. a and minute its

rate With we gap our of XXXX. our have range terms tax reform in XX% tax to would to XX% tax reform be In without range. in XX% tax expect XX% in been gap the it rate to the

For cash taxes, our even eligible our impact years. cash we immediate the larger of rate benefit an will expect from expensing and as full also tax capital spending for five

on So that's taxes. tax of cash the and impact reform forward gap our go

of we're of what the reform. with tax terms In doing benefit

was bonus Our December. a of employees special first action the announcement eligible to in

post Second, now. strong our reform of that already we've into return as back just capital finally, cover discussed. identified will the capital makes sense additional augment businesses And I investment economic plan now we as areas I'll tax

and at mentioned $X.X I repurchases share earlier, dividends shareholders to cash billion that in net free prior of returned $X compared we $X.X flow in As year and generated billion in billion year. the the X.X We we billion during of comprised flat times XXXX. ended $X.X leverage

confidence tax many For capital we've the strong coupled our approach and benefits our XXXX, to continue We're increasing share. XX% balance this in in reform. momentum increase that health to $X.XX dividend from we'll allocation discussed underlying per execute our times. with business reflects

to value. the DreamWorks of we've its added dividend which context I've net the to expect want now. Japan given be while our our balance very least range repurchase sheet, of growing years minimum leverage buyback our Since be our two we X.X In steady. strategic and in addition, was for XXXX. that Expressing X.X ago. Any around that we stock then arrived keeping ratio several $X times do times to the strong in bought place Higher that in as buyback billion of will Park in we've than while numbers, we a above at in

times XXXX. Hence Now order around rate flow we below buybacks $X free the minimum billion strength don't resulting given in tax declined higher leverage ratio need in of cash guidance to to of from see in of be balance in the conversion our of would very expect to reform a sheet. X.X our I confident the EBITDA

of adoption January Now before item. February to of for end to we to recognition accounting care schedules of the X, which was in our and items cash cable some material be impact higher primarily for but be business revenue plan trending will adjustments free item. and both with go take will to Comcast that's or higher across line housekeeping we one XXXX. all flow; that no standard the issue like The in result will that for there restated so effective I'd new expenses By revenue reflect Q&A, overall impact EPS the Comcast importantly

XXXX. So positioning execution end into and we XXXX by as our echoing Brian's performance comments strong our head about I'll optimism in and

Jason Now Q&A. you to over for

Jason Armstrong

Ben Swinburne go Morgan our comes from the Great. the of first with Regina, Thanks Mike. [Operator Instructions] Stanley. Please Thank you Mike. let's open line ahead. up call for please. Q&A question

Ben Swinburne

to share specifically about and taking that of access just that business your that you're for are I'm keep and wondering I to obviously the consumers what term you prepared business then Mike. a had follow-up about things Brian, more just what think When is internet you've for connectivity quick devices at are your you mobile and the use excited look market maturing certainly keep on business in I does for lot is but added three-year think to number broadband. important, longer is [indiscernible] coverage your growing pay in and talked you the a in runway the focused that broadband. remarks What or very products most growing, things roadmap connectivity

Brian Roberts

to kick Dave then Watson. Well it I'd over like let to me start and

the know of those much so year. why all at to boil we our that more those per items we matter. customers be home like making and experience. doesn't hard and again the you think to has the so that's home, growth as for XX% you our been in the look and a and give over and let speed in our love business. good year's think really of company this to Everything results to it years. about good all is And it's with and fourth correct with exactly absolute business the demonstrate roadmap connectivity an real that First I where I me we that. want that, that. be start about about feel two, really competitors. the for and all, of to broadband our about penetration we next is are coverage. the industry five the is an the penetration will incredible any Dave? bits, ultimately bits and we're this home customers even how consumption look this and explode, got up years, that the and number launched at results bit absolute years and when the quarter three that's mobile rate strength product future but several XX%, about really and where I innovation broadband down that smart requires are opportunity but happen product. investment is that, pods It's we XX best Then excited what's to going it years, our talked CES. We We CES at to in you pivot you've the that. all want

Dave Watson

look is growth opportunities Well at there just the being there. market as broadband, there numbers Brian XX% penetration the overall in and around both you said overall if rate. room share and I is broadband the think of

DSL growing working. focused XXXX, what home there's we're overall base is still is start focus growth. But Brian So X.X%. home's by as that room complete that's for on What's the gig to substantial so great year mentioned solid what's in by you past this XX%. of working is, is so at very the XXXX, now at scaled around end position rolled that X.X infrastructure, of on in us We'll a and innovation we out. have puts large have end scaled the growth got the

as capacity. usage ahead continues consumption in So climb, curve the we're terms be of and going to to of

drive new us that consistently the then combination that to devices the we've all the is the with that great coverage, you great the continue coverage provide are So the is, three in things. will XX of and so and pods speeds, is, then the that new we answer best-in-class think a extenders is business gateway the to these great big done able us last thing help XX off and coverage at increase devices speeds times Wi-Fi for being years last themselves control marry and I

the connect that increases, multi-product best that rate making just they service approach to be as we'll focusing disciplined so the towards for and and very broadband in broadband on that on So going you're sure discounts we're [indiscernible], approach focused disciplined modest providing and consumption be goes, customer. also, of - extent tier the want

rate and growth. opportunities there's So and

Ben Swinburne

helpful. you of your That's on heard on company say think just you And point I leverage X.X the last be. should Mike I think where is sort

that pretty $X of upside are suggesting from comes the that XXXX, capital X.X your is decently at what you year, so number interpret that way think comment? in would managing delever come towards you how that billion on we I this other sort should of sort then allocation based of opportunities

Mike Cavanagh

Sure.

in do the and [ph] doesn't context three change. things; growing to, balance to comments optimize team's a the which should capital three it to of This think keep of power over business balance one in about invest is long-term; sheet framework our returns of priority earnings two and shareholders. healthy is the the capital keep strong You very allocation

framework that you the just everybody described the course to buyback So own I and times to think of I minimum find with balance happen would five going during leverage there the X.X us around depending described. the strategy to anchoring year. obviously with - what's a be in just executing saying forecast their that's we've how upside this on of

Ben Swinburne

you That's both. Thank helpful.

Jason Armstrong

Ben. thanks Great,

Next question please.

Operator

go next Please line Morgan. JP Phil question of comes ahead. from Your with Cusick the

Phil Cusick

can. spin you direction and you have quick involved? then model can talk DOJ might you. right to about that to bar you I of the and see the some M&A if XXXX. up? mentioned the start Brian, to potential what given time a confident the today. deals US it look the acceleration for in of for getting before in now want business like really attractive and in you Brian, you And now International front two Do is wireless the is ones let and Thank lot Are better

Brian Roberts

start the to kick first. Dave me question to on wireless Let over

Dave Watson

that we're May. pleased it's really results. we early mobile in In launched while early with the Phil stage

like - our XXX,XXX the achieved we both. to focus can and lines we product I to we early, scale experience. lines sell game that the digital said we approach is strong What that's really customers solid think Mike connected unique We it's plan in it's position approach still very are is As like simple we're there to very as fact so existing our we most but approach. this momentum so as that finding taking of business and Gig limited a on scale is, the out, do attractive By

package to So positioned I into still existing with our locations real kicking and distribution as we're other of early to brandings just to think retail scale we so going including broadband it's it lines mobile. we're it optionality, so gives XXXX we're packaging business us our expanding in well begin going and and just

Brian Roberts

said and ways shareholders earlier. for just We always from new create find just in time, at you invest that Dave Mike At opportunities same reiterate described to talked for as the come more like capital the we're along in I businesses where or opportunities me bar. about in to Let as are business the with we doing have organic look just wireless looking Olympics. or value a you what

emphasize. say that's point to I acquire that think think have feel I and we nothing an there we to important is I

certainly to so. we instance set when goal value and don't we that's we've in shareholders look So do articulate created to to for I how and record the I almost except our think that it I know high track every for think

we recent so park most if NBCUniversal that would see be feel execute can Japan stay So mentioned our tuned, I theme before and as and we terrific the far example the but obviously about example. we'll biggest is

So that and helps hope about clarify. talk we to don't specific I situations

Phil Cusick

Brian. Thanks

Jason Armstrong

Phil. Thank you

Next question please.

Operator

go comes Your Hodulik the ahead. John UBS. of next from Please with line question

John Hodulik

and Maybe one Mike one for Dave. for

give sense the the a the next a Can video quarter-to-quarter? thanks. standpoint. streaming And growth of growth of of pressure flow? business, in a went looking on good billion year? you give live sense then Can some a Dave sort from of effective that and tax from number to from see in sense $X.X you're on from to of we definitely an get if for off of just expect XXXX you to providers? from XXXX much then outlook better free how First from better going what we're numbers sort since Mike subscriber us data expect programming some cash on what reform. dollar a terms savings us you maybe Does you're solid for cost saying you that change that

Mike Cavanagh

John, it's Mike.

take meaningful putting get it. the we income the next key billion and drive top decline about own of so What but taxes obviously everybody same impact, So on points about also your I'll swag again that. our $XX you tell amount in eligible the is which I so that for pre-tax is rather and can has expense will you what how those that. pieces got we're the than rate immediately get by are year wrong capital the of you. fixing tax gap numbers two then but obviously you'll XX to improve of forecast that, so to think estimate or the but in It's at use magnitude, cash said

John Hodulik

to CapEx majority [ph]? The be expect, you expensable vast

Mike Cavanagh

Yes.

John Hodulik

Thanks. right. All

Dave Watson

is John competition a expect to diminish. level video side, definitely So the on video competitive environment then very to don't it we really

a like basis. we're streaming which segment cable is network going the use our as very product but compete delivered to think targeted to TV, working us for QX a profitable going to we've have a box, top approach helped and going we video moderate what continue aggressively our adjustments I and marketplace introduced services we compete we're new that, in Instant how to made However, without set continue relationships is to on and some that

going note, adjustment we're for Our video thing that leveraging is board is based it is and entrants broadband, it to focus so best-in-class and so good is to it. be this working going But at we've important marketplace. top think competitive in customers. aggressively we that full and compete packaging good going the stay bundles feel the to we're seen coming bundling, to The and QX, I XX about terms that over new on while intensity across of the that this

We so have broadband us. have more We're for leveraging good transitioned centerpiece a going and on growth, and is broadband broadband. profitable more to balance towards

from the we're new environment saw compete we at to the see video doing, expect what of aggressively just We and but don't year. last in leverage things we much of too end the some shifting

John Hodulik

guys. thanks right, All

Dave Watson

point cost. on To programming last

we're transactions that's lots importance taking the at moderately programming this said think programming Mike on we around of stay and on is margin the timing anything, decrease it focused adding know is taken transactions overall the as to like out as the expect and as we've lots relationships do relationships out, you piece look think one things and the of cost to and experience so expect and some I was very decrease. of we're which to of customer that focused we are, but that we margin out it extent but just fact moderate you I focused extremely because are

Mike Cavanagh

XX as translates the Mike cable in it's for obviously chime for margins XXXX. to in That basis into And much as there. improvement points

John Hodulik

Great, thanks guys.

Jason Armstrong

please. question Next

Operator

with America Please line of from question Reif next Lynch. Cohen Bank the go of ahead. comes Your Jessica Merrill

Jessica Cohen

At the advertising offering. know of I front position. the I both first addressable Jenckes, and where Comcast were Linda of guess Marcien platform industry to weeks leading seem for almost an Yaccarino And terms there. start in of be be services to And combined the you're right don't industry center and but to Cable NBCU ago, few CES and question. sort Cable NBCU seemed

can so and any do really on distribution in traditional seen there to company some never lost to So can obvious you bit the talk in give that restructuring approved where companies be ways and follow-up think M&A one industry little you clear dollars in premium the topic. in Brian the unpredictability what seems products. talk and playing bit little just or doing of with DreamWorks of you're terms efforts is color integration industry. and the the newer are on Can approved. yet and now coming regaining get Washington about what There And amid of know opportunities But both I if us same you specifically, throw I to media not that the an as so you then just you just you're NBCU this media from help about a for consumer or for within right heavily does a restructuring in investing many and also have out we've Steve. you different forces animation your can And video expecting? a what in platforms. are you're in can

in just of can you're thinking distribution? or us content pushed or media of So how you getting give another in are terms direction getting, one on you color

Steve Burke

good you've filmed and OCF. we're worldwide. of progress products with much IP to do when really and that are what year that opening back and very those you our up from made the releases in have then IP, in releases then leverage bought DreamWorks a or pay So to and in retooled can year five you questions the two imagine this of of actually cranked then we've throttle happy got to XX have films and same and animated enough we and see lot We've is parks or record ago lot and and should years, at every capability that consumer couple with future. the two releases. we consumer relationships. and The have year a a the I'll very new let of Brian, and year going a agent At results Dave the investments four year. couple year year products of off that our that with DreamWorks. consumer employee last our combine overseas, XXXX answer four we'll when have and in theme believe four completely being have releases created or of in embedded ecosystem We should your pass of animated DreamWorks you're to the films next to if great will full taking that We're relationships, months need time, thereafter We that Illumination, strong that we growth we group that a products appearance made have now. in then with me but offices flow seen start capability, a continue ultimate have we've couple so the slow films

big consumer I is NBCUniversal. upside think a products for

growth is the to and we Facebook the flat, television news In its effect of of advertising if broadcasting and Google in in really depends should be the the the advertising particularly a holding given advertising, see impossible terms own. Google the advertising that television and of positive digital toward it's quarter. combine dominance negative lot the good the span is of the you of cable, and participating is of not roughly but ecosystem our the assets. of not depends terms ratings decline of on strength company, on digital The CPMs. to on effect Depends growth Facebook is degree and that in we're going

in advertising lot as of be but the of progress our that the more rolled Linda Cable Our four, and in out more it it to dream that be to market terms Snap. that We've with currently the and the a plans that as advertiser holding us, like the is there, and digital assets all TV should anybody advertising characteristic we're a big We've I and targetable, XX is platform to in interactivity television more has. what goes. the is change effected We've as material heard by We monetize for Vox of how made the and something and want a broadcast overtime the is VoD far think in to and have more television the dream is ecosystem Bowl big but well make markets you good there's go the who's lot products be digital to hard that in take make positives advertising of of different lot have I - a and lot that gives we we've of we're all two-thirds and think aspects on way news Comcast lot big work the how and more you and like got investments Comcast think it CES there BuzzFeed has be have. The online on a more television of to nights our you, overlaying and we the data she's made brands that big on own about a that selling we've consumers do of creating launch the it's has next have and technology if probably in particularly positioned lost you and where monetize off head on should digital is, think addressable not a made at five Olympics number and that provides. ours have at progress then that ecosystem we and Super you're really events of a months. the that, television its on

Dave Watson

Dave. Jessica, And

on pull the very said the side able could that one VoD. together the Marcien Steve focused pull stay and we're wave that us is things content all first on cable focused to that together of Is is being helping the our As platform on.

together. transition on online focused the coming continues - running our linear VoD So addressability success with is that. up VoD the to and having but really stay all

pull to these have opportunity I think things all cable and unique distribution together. a we

nice a things in that Marcien happen. done pulling to platform make these together the So has job position us elements put

Brian Roberts

question. Just other to the

I and time of think prior those conversation opportunities created, are in think some covered an being I and theory the and are little interesting in some a business we bit negative it's probably it my are opportunities positive.

it's where innovation to in and coming to for changes efforts And grow. and as acknowledging I instance. there but I when put think we for theme instance jobs didn't our emphasis NBCUniversal but parks broadband understand are video we our Dave - that I example think just saw that we an we on bought which study as around think anticipate opportunities the saw

of talk let's and it see the prediction if restructuring So your there quarters more will some of overtime way in kind information industry it's we'll of that about out of ahead. for that be plays all now, the that let's leave thing the

Jessica Cohen

Okay, thank you.

Jason Armstrong

Thanks, Jessica.

Next question please.

Operator

Your next from of ahead. Marci Fargo. Wells question go Please comes the line with Ryvicker

Marci Ryvicker

for one Mike for then I've two questions Steve. and

at Super you have and do are Bowl cash balance do what own [indiscernible]. anymore the of reform you you put are So margins, costs XFINITY for Mobile first in until Cable I driving, sounds corporate. is And this you this like in guess going so the wait improvement correctly. then year advertisers to basis into sheet? any coming then go programming towards a point advertising But come very sounds profitable? are Mike, of hearing is the cable from Steve it system majority have point Communications, the it's advertising their in might what do that XX in tax unique dollars the like the you we are portfolio sense their that on secondly [indiscernible] And Olympics. with excess terms into So staying interpreting and

Mike Cavanagh

Thanks, Marci.

ramping not expected here Mobile XXXX otherwise information, idea for cable. of obviously but The the to to see corporate XFINITY Mike. [ph]. - matters, everything in probably It's stay that it's as if I share you'll core to guess The all we're So in the obviously all do is share business have had would XXXX business. distort that we to

it that. so to years I'm on So angles, couple I about you, my you be answer sure clear, so transparent going the different business share put intended a be to is the And but we of putting and make of then bunch where and right. can number you judge with would talk we'll it it get on think from margin improvement

you years sum we which as the away XX years much points the base say before continued. increases easing heard two looking It's programming cost great things, job big and managing have it back a is of of As from two obviously parts done I XX. and might cost that's the basis Dave have this. programming to had team of really they all the

contributing efficient being changes over not So a programming. that's on give in all just credit period multi-year categories it's that margin focus year's this say to I the would

Steve Burke

So we're it about of Super head which XX% we think $X XX out. from we're advertising, averaging and essentially we're we XX% a away year the Super terms call or the as last unit is up into from in Bowl, and million sold days Bowl

hot. how sign So as for goes, you're is, immediate hot Super it's if to market looking far as sort the Bowl as an the pretty of

and now. think a for television strength. I direct It more it that into three more sentiment, advertising advertising cash has related having a little ago. getting there from like or months that business think I tax I six than now six be might stronger ecosystem or two might years slightly don't correlation sentiment overall is be it the stronger probably strong is and ago been was it cuts a degree to necessarily think or months business stronger was the but while now it throwing just than to now feels

a and you going think by as of advertising accounts look only upfront. is it's coming away which market strong a into few upfront, we be that to feel the forward all can I kind the into months

Jason Armstrong

I'm would are thing the other another would add, that The Bowl I sure. only in be the Eagles Super strong, [indiscernible] not theory but because

Marci Ryvicker

you. Great. Thank

Jason Armstrong

Marci. you, Thank

please. question Next

Operator

Please comes the of line Your go Evercore. with next question Vijay Jayant from ahead.

Vijay Jayant

I good cable. year underlying The for MVPD last affiliate number NBCU's over impact on know and retransmission Steve. and at the and trends the numbers you just virtual the - pretty broadcasting subscriber looks wanted to growth the

So the II, Title there subscriber and probably overhang any done color the side an that's of there be the on different just not Thank given question business. net is underlying of that's now on the how broad anymore reversal going and to broadband trends you. are then on neutrality anything the a

Steve Burke

three point, think two you tenths MVPD relatively business think or you I you'll a board some general if were but look So virtual for the we're overall. are virtual about of more accelerating, their MVPDs a minor point of grow, NBCUniversal changes major, not an last of in about a talking and and and effect the perspective major business percentage them but MVPDs into percentage the not tenths changes in across them are at or you're the quarters as when of accelerating talking getting it's percentage changes NBCUniversal changes really about see the from

Internet guarantee consumers we've and Title we II and I that free Open Open protection. committed thought was that enforceable to just been said unnecessary Open Internet think we've have supported to Internet. We

with get no and administration. we - different reversed that it's revisited Internet enforceable So believe Open set can will to now Congress some enduring of hopefully longer have protection put

to that we're years us billion. to confident So tuneable the I the do at next in the think statement over economy have significant it $XX to gave least the make our going five investment

and this we're forward think sake. conversation moving I forward to innovating So look investing everybody's behind someday us and putting we for

Vijay Jayant

so much. Thanks

Jason Armstrong

you Thank Vijay.

Next please. question

Operator

comes question the of next from Your go ahead. Jason Bazinet Citi. with line Please

Jason Bazinet

seven XX% how for up change Mr. it had guys was EBITDA universally the about when I question I for negative the Burke. it look at years. made almost I dollar guess acquisition when was did you do of NBCU XX% of just EBITDA they my M&A, NBCU numbers XXXX and back in if a remember last hope were you I on everyone almost the your because

there years leverage or see NBCU's think more I begin will of you. of you growth fronts. see next understand still is, a or big number In words growth. done that leverage left? industry's you Thank two over My retrans. Telemundo, sort a all Studio, you've great question think do resemble on Park three the other what we you job do are to closely

Steve Burke

we it's we still ago. a to hard think I and of company very have opportunity predict. seven bought years When lot Well very, the

you at makes future. would the difficult we nights. of almost that night was degree MSNBC that many look Fox you and operating equally MSNBC and news growth. and of about opportunities never I the we every the dreamt of it's news lot ago and Fox cash was beating if We this saw we that flow year as fact make. get a about we CNN about but look years $X.X that what seven eight articulated opportunity But into and weren't and think beating in or $X.X a billion billion past opportunity kind of I the fraction think still, Fox have CNN

at at If which open seeing substantial if are look very lot room attractions year our than and and more thousands very, Telemundo primetime Univision attendances Univision beating you Telemundo, theme look we you parks time last in new have more in jumps money making we we're a every fantastic and for hotel rooms.

If its Universal the history years. primetime last the from better really two biggest to lot in is, I we of The going any a of can't matter fact of you in than think is have NBC three and opportunity. across look the board be first you three had years has and Pictures first out fourth still

So trees still a don't grow lot to opportunities. but of we have the sky,

a I Everybody great in capital we've team. together a We're management way, think with we very symphony. a culture. allocating rational works great have

continue we So opportunities. and grow of and have optimistic I'm can we to still lots lots

Jason Armstrong

Thank the you question Regina, make we'll Jason. this last please.

Operator

Our final question will with Sachs. Brett Feldman Goldman go come from the ahead. Please of line

Brett Feldman

growth then sure expand was your way cost Thanks. got upon plans distribution. on customer could what XXX,XXX maybe distribution particularly is targeted is acquisition pretty higher going from be just a question. that's understanding drag incremental narrowing more had momentum his I hoping than it the Mike order on if I key are there mentioned EBITDA greater and little XFINITY comments And you to just that just of customer bit this a I and subs that losses like therefore the that. in going. think thought to Mobile. confirm and initially you variable and the make little over a higher just we're able to for the that there with right taking for year some here keep in follow-up you're Thanks the sounds to XXXX, you to standpoint want

Mike Cavanagh

Brett, to it's [indiscernible] it hand Mike. over Dave.

growing hope which yes, be had very up it's next the higher, ramping much on maybe happens of we So in function say and until expected what what so line subscriber this acquisitions year's with drag will for I'd but having stability we touch the a meaningfully very not to a year level we obviously customer good get the higher relationship. to you'll as be a economics going of we're than be that's it's overall of so thing level a business at to sort but the drag increasing this, think valuable of a

Dave Watson

experience having was working. on and with distribution so mentioned of things digital. the So and we digital about the a existing retail We're as not lot And the introducing a digital retail operations great need around early bigger, through but we're last into having I go from do success call process, [indiscernible] there. scaled good but introducing through and there's with but real our we've we channel. that's plan, pleased to one inbound talked a around products. experience we're our don't it, good retail, think a which on, least, sales which retail job feel always early centers our have mobile we a long-term existing standpoint, traditional It's and locations the a I a focus boarding into done

is opportunity So there I distribution we things piece expand you and mobile. together think upside as all these in

Brett Feldman

product. customer that Are relationships I you question. on, able the know you you're new box? targeting you're finding with mobile this Thanks at bring quick base one your existing when to attach

Dave Watson

about just much on talk we're As the Device give balanced Bring so, both bring too existing and opportunity be mobile. customers early it's but color nice new a real customers we'll so just in, on to not and customers lines being in you too reaching we also out device and able their new to for transitioning Own that, business to and Your to more but come addition, approach new existing then just heard, to focused over maybe of talk addition more other customers about announced

Brett Feldman

question. All right. the for taking Thanks

Dave Watson

you Thank all.

Jason Armstrong

We'll for Regina you. everyone joining you call. morning. thank to end back this us Okay, the

Operator

at Eastern o' at January will is XX XXX-XXX-XXXX run through midnight number beginning call is starting clock dial-in the recording A company's call you website This be number the of a of available PM today. PM on teleconference. and Eastern Thank the at XXst replay for today's will participating. There XXX-XXXX. be XX:XX Time. The today's Time It concludes time. available will also ID conference Thursday, conference Eastern

all may disconnect. You

Comcast (CMCSA) 24 Jan 182017 Q4 Earnings call transcript